But don't you think misallocation of resources are the entire cause for recessions? If the government is the sole reason these resources are misallocated to begin with, on a wider scale than just a sole entrepreneur screwing up, wouldn't allowing the market to properly allocate resources be the way to ensure recessions don't happen again? The problem lies in the boom, not the bust.
Even if it's your contention that the market sometimes are responsible for these mass misallocations, why are we not trying to limit the frequency of recessions by assuring no more takes place from what we can control-- the government?
Even if it's your contention that the market sometimes are responsible for these mass misallocations, why are we not trying to limit the frequency of recessions by assuring no more takes place from what we can control-- the government?
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